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North Carolina Tax Professional Pleads Guilty to Tax Fraud

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North Carolina Tax Professional Pleads Guilty to Tax Fraud

According to a Department of Justice press release, a North Carolina tax return preparer pleaded guilty to criminal tax charges for her role in a tax fraud scheme. As we inch closer to the end of the tax year, some taxpayers may feel the urge to underreport income, inflate deductions, or take other steps to lower their tax liability or increase their tax refund. This story is a clear reminder that taxpayers and their preparers who engage in efforts to illegally avoid paying tax face serious criminal and civil consequences. If you have failed to file a tax return for one or more years or have taken a position on your tax return that could not be supported upon an IRS or state tax examination or criminal tax investigation, it is in your best interest to contact an experienced tax attorney today to determine your best options to get right with the government.

As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!

Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosurebefore the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. 

It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.

Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.

Tax Preparer Trained Her Staff to Break Tax Laws

Court documents reveal that Adrienne Williams owned and operated Ultimate Tax Service, a tax return shop in Rocky Mount, North Carolina. As a part of her guilty plea, Williams admitted that she taught her employees how to break tax laws, including how to file falsified tax returns. Specifically, Williams instructed her employees to claim false federal tax withholdings that in many cases, generated unlawful refunds. The IRS estimates that Williams’ business requested more than $3.5 million in fraudulent refunds.

When Williams is sentenced next year, she faces up to five years in prison. She will likely also be sentenced to serve a period of supervised release upon the completion of her physical incarceration. Finally, Williams will likely be ordered to pay restitution to the IRS, representing the tax loss she and her company caused.

When Playing Games with the IRS Becomes Criminal

Underreporting income, inflating deductions and credits, and making other material misrepresentations on a tax return are some of the pieces of low-hanging fruit that are frequently picked by IRS criminal tax investigators. The IRS may be a government agency, which occasionally brings with it a misbelief that its processes and technology are outdated. The IRS has made incredible advances in its ability to use data analytics to review tax returns for potential inaccuracies and badges of fraud. If enough instances of potential fraud are present, a taxpayer’s return is directed to an agent for additional review who can choose whether to escalate the return, potentially resulting in an IRS criminal investigation.

If you have taken a position on a tax return that is untruthful or could not be supported upon an income tax examination, it is in your best interest to contact an experienced tax defense attorney. There are various programs established by the IRS that allow taxpayers to come forward and correct past mistakes. With the help of your tax defense lawyer, you will decide which route is right for you.

We Are Here for You

Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.

In addition to our main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.

Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.

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